LX Ventures (LXV) announced this morning that it has signed a Letter of Intent to acquire Vancouver's Strutta Media.
Strutta is a social media platform that enables brands to create, launch and manage online campaigns to drive leads, awareness and sales.
Under the terms of the Letter of Intent, on closing, LXV will issue 4,687,500 common shares and pay approximately $525,000 in cash to the security holders of Strutta, in order to complete the acquisition. LX Vetnures is currently trading at 69 cents.
Up to an additional 9,375,000 common shares are issuable by LXV as certain milestones are met in terms of agreed monthly recurring revenue targets. The securities will be subject to a four month hold period and will be subject to certain additional pooling restrictions.
The transaction remains subject to completion of final documentation, regulatory approval and final due diligence.
Strutta was co-founded by partners Danny Robinson and Maura Rodgers in 2008 and raised $1.2 million from GrowthWorks, Telefilm, and local angels. Originally a video competition site the startup concept has morphed over the year into a social media platform.
Strutta co-Founder Maura Rodgers stated, “Strutta’s team and technology platform can convert social media traffic at dramatically higher rates than traditional online advertising. The combination of Strutta’s monetization engine with Mobio’s social traffic positions LX Ventures to have the most valuable ad inventory on the Internet.”
Strutta Director and LXV CEO Mike Edwards added, “We are thrilled to announce this relationship with the Strutta team as they are an ideal addition to our social marketing portfolio along with Mobio. We are taking a leadership position in the social marketing space, and natural synergies exist between Strutta and Mobio, allowing both businesses to accelerate simultaneously.”